New Enroll in our GIC Finance Online Course Here!

    Register

    Question

    Please read passage and the answer the following questions ( Q no 19 to 22) based on the passage. Pension schemes for unorganised workers are essential for ensuring financial security and stability in their later years. In India, a significant portion of the workforce is engaged in the unorganised sector, which includes street vendors, domestic workers, construction laborers, and agricultural workers. These individuals often lack formal employment contracts, access to social security benefits, and adequate savings for retirement. Establishing pension schemes for unorganised workers is crucial for several reasons, including financial security, poverty alleviation, social inclusion, and improved quality of life. One of the primary reasons for implementing pension schemes for unorganised workers is to provide them with a stable source of income in their old age. Without a pension, many unorganised workers face significant financial insecurity when they can no longer work due to age or health issues. A reliable pension can help them meet their daily needs, cover healthcare expenses, and maintain a decent standard of living. This financial security is essential for ensuring that they do not fall into poverty during their retirement years. Pension schemes can play a vital role in alleviating poverty among unorganised workers. The unorganised sector is often characterized by low wages and job insecurity, making it challenging for workers to save for the future. By providing a regular pension income, the government can help reduce the economic vulnerability of these workers, lifting them out of poverty and enabling them to lead more dignified lives. This, in turn, contributes to overall economic stability and reduces the burden on social welfare programs.

    Statement 1: PM-SYM scheme is intended for unorganized

    sector workers with monthly incomes up to ₹15,000. Statement 2: The pension amount under PM-SYM is adjusted according to inflation. Which of the above statements is/are correct?
    A Only Statement 1 is correct Correct Answer Incorrect Answer
    B Only Statement 2 is correct Correct Answer Incorrect Answer
    C Both Statements 1 and 2 are correct Correct Answer Incorrect Answer
    D Neither Statement 1 nor Statement 2 is correct Correct Answer Incorrect Answer
    E Both Statements 1 and 2 are incorrect Correct Answer Incorrect Answer

    Solution

    Statement 1 is correct as the PM-SYM scheme is intended for unorganized sector workers with monthly incomes up to ₹15,000. However, the pension amount is fixed at ₹3,000 per month and is not adjusted for inflation.

    Practice Next